AICPA Exam CPA-Business Topic 2 Question 50 Discussion

Actual exam question for AICPA's CPA Business Environment and Concepts exam

Question #: 50
Topic #: 2

[All CPA Business Environment and Concepts Questions]

A firm has daily cash receipts of $100,000. A bank has offered to reduce the collection time on the firm's deposits by two days for a monthly fee of $500. If money market rates are expected to average 6 percent during the year, the net annual benefit (loss) from having this service is:

A$3,000

B$12,000

C$6,000

D$(6,000)

Show Suggested Answer

Suggested Answer: C

Choice 'c' is correct. $6,000 net annual benefit from using a lockbox system.

by Raina at May 07, 2022, 05:07 PM

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